The Scottish Government is actively considering the introduction of state-backed finance to bolster its commercial shipbuilding sector. Deputy First Minister Kate Forbes indicated that options are being explored, which may involve the use of enterprise agencies and the Scottish National Investment Bank. This initiative arose during a session at the Scottish Parliament, where Labour MSP Paul Sweeney highlighted concerns regarding the disparity between Scotland’s robust naval shipbuilding pipeline and its limited commercial shipbuilding activities.
Sweeney pointed out recent developments, including the steel cut for HMS Bulldog and the rollout of HMS Active at the Rosyth shipyard. He emphasized that Scotland is currently at the forefront of one of Europe’s largest naval shipbuilding programmes. However, Sweeney argued that the lack of state-backed financial mechanisms for commercial projects presents a significant barrier to growth. He cited Germany’s longstanding practice of utilising state-supported financing in its shipbuilding sector as a successful model. Sweeney urged the Scottish Government to consider establishing a similar scheme to instill confidence in smaller commercial yards, such as Ferguson Marine.
In her response, Forbes acknowledged Sweeney’s concerns, agreeing with his assessment of the strengths present in Scotland’s shipbuilding sector. “I agree with Paul Sweeney that the strength of the workforce and the pipeline of orders that are coming through on the defence side are indicative of how much respect there is globally for the skills of Scottish shipbuilders,” Forbes stated.
Moving forward, Forbes indicated that the Scottish Government is examining various financial support options. “There are certainly options for us to consider, through the enterprise agencies and the Scottish National Investment Bank,” she noted. This exploration of options is part of a broader strategy to enhance the financial landscape for Scottish shipbuilding.
Collaboration with the UK Government
Forbes also highlighted ongoing discussions with the UK Government’s National Shipbuilding Office, which is investigating targeted financial interventions to support both public and private financing in the shipbuilding industry. “There is an opportunity to work closely with the UK Government’s National Shipbuilding Office to ensure that the Scottish shipbuilding industry benefits from the national and international opportunities of its shipbuilding strategy,” she added. Forbes assured Sweeney that she would keep him informed about any developments regarding these initiatives.
The consideration of state-backed financing is part of a larger effort to revitalize and strengthen Scotland’s shipbuilding capabilities, ensuring that the industry can compete effectively on both national and international stages. As discussions progress, the potential impact of these financial strategies could significantly influence the future of commercial shipbuilding in Scotland, particularly for smaller enterprises facing challenges in securing adequate funding.
